Private Capital Expenditure data for Q2. Its picking itself up from the rubble heap after having fallen off the mining-investment 'capex cliff'.
Previews;
ANZ
- forecast capital expenditure slipped back in Q2, offsetting the small rise in Q1.
- Ongoing weakness in the mining sector is likely to see buildings and structures spending continue to fall.
- We will also get a third estimate of firms' CAPEX intentions for 2017-18.
- We expect this will show a solid improvement from last quarter, given strength in reported business conditions and investment plans.
National Australia Bank:
- NAB looks for a small decline of 1.0% after last quarter's 0.3% gain.
- As a measure of private capital expenditure, this measure is less impacted by state government infrastructure spending only to a limited extent. The March quarter Capex report expectations for 2016-17 pointed to a hefty 20% decline in Mining investment in Q2, weighing on likely spending in Q2. Against that, signs of rising non-mining investment and hints of some "catch up" in resource-sector spending to maintain equipment and production would be some offset.
- NAB also looks for a modest upgrade to Capex expectations for 2017-18 on the back of improving business confidence and signs of higher levels of business activity, including from profitability.
- For 2017-18, NAB looks for expected capital spending of $95bn, up from $84.4bn reported in March, partly from a genuine upgrade and partly from the usual uplift that occurs closer to the start of the new financial year.
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I'll have more on the capex data (previews) to come.
